Now or never, am I right?
Between the economy and the federal mandated mortgage rule changes and their ensuing fallout, it is now more important than ever to get a solid pre-approval in place.
Not just speaking to first time home owners either! Before you list your current home, refinance your mortgage, or consider buying a rental, you need to make sure that you qualify under the new mortgage rules.
Here’s some things you need to know:
- Rates have climbed since the rule changes were announced, so if a new home is in your future get a rate hold in place so you are protected against further rate increases. Most rate holds are good for 120 days.
- I’ll make sure to check your credit and not just see how much you are qualified based on your income. I don’t want to sell you a home only to tell you that you don’t qualify for the financing because of something on your credit bureau.
- And given the variety of ways we get paid, I will make sure your pre-approval is solid given your situation. I believe in taking time to understand your situation, and every situation is as different as the person living in it.
- You will have to qualify for the mortgage under the new rules even if you are just moving the mortgage from A to B. I’ll help you with that.
- Ironically the changes now mean that if you’re refinancing your home there is a possibility that you will have a higher mortgage rate then someone putting 5% down. This is because the 5% down mortgage is insured while yours with the significant amount of quality is not making it a higher risk for the bank. If you’re considering refinancing you may want to do it sooner than later given the rate increases.
- Lastly retail properties have been heavily hit by changes. Our economy means that fewer lenders are willing to consider these mortgages to start with and those that still do have upped the ante. Some have increased the minimum-down from 20% to 35%. Others require a very strong net worth in liquid assets. If you have multiple properties I will make sure to report on your taxes.
Sounds like a lot to take in? It is, but that’s why meeting with a qualified mortgage broker is essential to ensuring your purchase of a new home and the management of your mortgage is as easy and stress-free as possible.
This is a good strategy for both new home buyers, and renewals. I’ll get you a solid pre-approval, then you are set to look for your new home.